ASX-listed Amani Gold has entered into a MoU to raise US$25 million to support its exploration and development plans in the Democratic Republic of Congo (DRC).Amani gold plans to do so through the issue of 500 million shares at $0.05 each and 250 million free attaching options at $0.07 a piece.
Subject to completion, the Amani Gold capital raising proceeds will underpin the funding of further infill drilling and metallurgical test work required for prefeasibility and feasibility studies at Kebigada in the DRC, social studies and implementation of key social initiatives to pave the way for development activities at Kebigada and continuing exploration to better define the mineralised potential of additional targets identified at the Giro gold project.
In addition, and, subject to due diligence and satisfactory commercial negotiations, Amani Gold will commence an aggressive exploration programme on the adjoining Tendao project.
[quote]The MoU was entered into with Hong Kong-based Luck Winner Investment (LW). LW is a special purpose investment company established by a Chinese investment group to invest in the Giro gold project. Two key shareholders of LW, Yu Qiuming and Fu Sheng, have many years of experience in the development and mining of copper and gold projects in China.
Yu has more than ten years of experience in senior management of mining companies, including with capital and project finance markets and has a wealth of mining projects experience, more than ten years of mine management experience and broad management skills.
The board of Amani Gold recognises that the interest and commitment shown by LW in Amani Gold represents a significant statement of confidence in the Giro project and the potential for gold exploration at Tendao and the ongoing work that Amani Gold is undertaking in establishing a major gold project in the DRC.
“Subject to completion, this capital raising will put Amani Gold in a very strong position to take the Giro gold project through to completion of feasibility studies and assist with a comprehensive exploration programme at Tendao,” states Amani Gold chairman Klaus Eckhof.
“The raising introduces a cornerstone investor in the company at an attractive premium for existing shareholders. We look forward to welcoming Luck Winner as a long term and supportive shareholder to the Amani Gold register.”
LW’s investment in Amani Gold is subject to completion of due diligence by no later than 25 May 2017. Upon completion of due diligence to the sole satisfaction of LW, the parties will enter into a binding subscription agreement, which amongst other things, will give LW the right to nominate board members.
Based on current issued capital, LW will acquire approximately 28% of the issued shares on a post completion basis. Consequently, the transaction is subject to Amani Gold shareholder approval for the purposes of the Corporations Act and ASX listing rules.
All images courtesy of Amani Gold